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Corporate Tax Advisory

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Corporate Tax Services In UAE

With the UAE introducing a 9% federal corporate tax on business profits exceeding AED 375,000, effective from June 1, 2023, businesses across the country—excluding specific exempt entities—are now required to comply with the new tax framework.

Corporate tax will be calculated based on the net profit reported in financial statements prepared in accordance with internationally recognized accounting standards. This underscores the need for accurate and timely financial reporting, including proper audit procedures.

At MLS Accounting and Taxation LLC, we provide end-to-end corporate tax services to help your business stay compliant and prepared. Our experienced consultants assist with:

Scope of Corporate Tax in the UAE

Stay Compliant and Optimize Tax Efficiency with MLS Accounting and Taxation LLC

Under the UAE Corporate Tax regime, corporate tax applies to both resident and non-resident taxable persons conducting business in the UAE.

1. Resident Taxable Persons

A legal entity established or recognized under UAE law
A foreign legal entity that is effectively managed and controlled from within the UAE
An individual engaged in a business or commercial activity in the UAE
An unincorporated partnership that opts to be treated as a taxable entity

2. Non-Resident Taxable Persons

Non-residents may also be subject to corporate tax if they derive income from the UAE through:

Exemption For Corporate Tax in UAE

While the UAE’s corporate tax law applies broadly, certain entities and types of income are exempt from corporate tax under specific conditions outlined in the legislation.

Government Entities Exempt under Article 5, provided they meet the defined conditions.
Government-Controlled Entities Eligible for exemption under Article 6, subject to compliance with regulatory requirements.
Entities Engaged in Extractive Activities Exempt under Article 7, when involved in the extraction of natural resources and meeting all applicable conditions.
Entities Engaged in Non-Extractive Natural Resource Activities Covered under Article 8, subject to approval and compliance.
Qualifying Public Benefit Entities May claim exemption under Article 9, if they serve the public interest and are officially registered.
Qualifying Investment Funds Recognized under Article 10, provided they meet specific structural and regulatory conditions.
Public or Private Pension and Social Security Funds Eligible for exemption if they satisfy the conditions outlined in the legislation.

Corporate Tax Base and Rate:

0% on taxable income up to AED 375,000.
9% on taxable income exceeding AED 375,000.

Small Business Relief under UAE Corporate Tax Law

To ease the burden on start-ups and small enterprises, the UAE has introduced Small Business Relief under Article 21, offering eligible businesses significant tax and compliance benefits.

As per Ministerial Decision No. 73 of 2023, a resident person can elect to be treated as having no taxable income for a given tax period—if the following conditions are met:

The revenue for the current and previous tax periods does not exceed AED 3,000,000.
The business is not part of a multinational group subject to country-by-country reporting.
The entity is not a Qualified Free Zone Person.
The relief applies only to tax periods ending on or before 31st December 2026.
Additional eligibility requirements may apply under Article 21.

Transfer Pricing (TP) in the UAE

The UAE’s Corporate Tax Law introduces a comprehensive Transfer Pricing (TP) framework, aligned with OECD Guidelines and based on the arm’s length principle. These rules apply to all transactions between related parties and connected persons, ensuring fair market value is maintained across intercompany dealings.

Transfer Pricing Methods

To determine an arm’s length price, the following OECD-recognized methodologies may be applied:

Comparable Uncontrolled Price (CUP) Method
Resale Price Method (RPM)
Cost-Plus Method (CPM)
Transactional Net Margin Method (TNMM)
Transactional Profit Split Method (TPSM)

At MLS Accounting and Taxation LLC, our TP specialists help businesses analyze, document, and defend intercompany transactions, ensuring full compliance with UAE TP regulations while minimizing audit risk.

Let’s Connect and Grow Together.

At MLS Accounting and Taxation LLC, we’re more than just your service provider—we’re your growth partner. If you’re looking to explore reliable, expert-led accounting, bookkeeping, or tax services, we’re ready to help.

Corporate Tax on Free Zone Businesses in the UAE

Why Corporate Tax Services Are Essential in the UAE

Navigating the corporate tax landscape in the UAE requires expertise and precision. With MLS Accounting and Taxation LLC, businesses can ensure compliance, optimize tax savings, and minimize risks, all while gaining valuable insights for strategic tax planning.

Here are some key benefits of utilizing corporate tax services in the UAE:

Ensure Legal Compliance: Avoid fines and legal issues by adhering to complex tax laws and regulations established by the UAE government.
Accurate Tax Planning and Preparation: Benefit from expert advice and precise guidance to optimize your tax strategy.
Maximize Tax Benefits: Leverage opportunities to reduce tax liabilities and make the most of available financial resources.
Reduce Risks: Minimize the risk of audits, penalties, and other compliance-related challenges.
Expert Guidance: Receive ongoing support from seasoned professionals on all tax-related matters, keeping your business ahead of regulatory changes.

Our Comprehensive Corporate Tax Advisory Services in the UA

At MLS Accounting and Taxation LLC, we pride ourselves on being one of the leading tax advisory firms in the UAE, offering deep industry expertise and tailored tax solutions for businesses of all sizes. Whether you’re a local startup or a multinational corporation, our dedicated team of tax professionals is here to help you navigate the complexities of corporate tax in the UAE.

What sets us apart is our unwavering commitment to quality and client satisfaction. We understand that every business is unique, which is why we take the time to fully understand your specific goals before offering personalized solutions. Our team stays ahead of the curve by keeping up with the latest tax laws and regulations, ensuring you receive timely, accurate advice that aligns with local compliance requirements.

Our Core Corporate Tax Services Include:

Tax Planning & Compliance: Strategic tax planning to minimize liabilities while ensuring full regulatory compliance.
Tax Advisory Services: Expert guidance to navigate complex tax structures, optimize tax positions, and identify opportunities for savings.
Tax Audits: Thorough tax audits to identify potential risks, ensure accuracy, and maintain regulatory adherence.
Tax Valuation: Accurate tax valuations to support business transactions, mergers, acquisitions, and other corporate decisions.

This includes of the following

Consolidation

Consolidation is the process of combining financial data from various organizations in order to give a single picture of financial position. This is critical if your company has stock in other companies. Compliance with international financial reporting standards or USGAAP may be required due to regulatory requirements or business status.

Actual, Budget, and Forecast Numbers

Comprehensive overview

Financial KPIs

Analyzing financial and operational performance

Cash Flow Insights

Understanding liquidity

Intercompany Elimination

Streamlining intercompany transactions

Minority Interest Calculations

Determining partial ownership

Foreign Exchange Adjustment

Factoring in currency fluctuations

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